A Gentle Softening of Prices

By Robert Nardi
A gentle softening of prices in November encouraged many buyers to purchase homes for sale in Naples at levels similar to pre-pandemic home sales, even as home prices have increased by 40 to 50 percent since 2019. Pending sales for November increased 16.9 percent to 856 pending sales from 732 pending sales in November 2024. The median closed price in November decreased 4.9 percent to $546,950 from $575,000 in November 2024. The median close price has declined slightly in seven of the previous eight months compared to the same months in 2024.

Broker analysts reviewing the November 2025 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), were not surprised to see just over 1,000 price decreases during November. While minor, the price decreases indicate a growing shift away from aspirational pricing by sellers as they adapt to a new market environment, where increased competition and smart pricing are driving improved sales in the Naples real estate market.
The first part of the year started slowly, mainly because people were watching how the tariff situation would unfold. But we were fortunate in the second half, as we avoided hurricane activity, so sales improved dramatically, making up for the slow sales during the first half of the year.
Overall, closed sales in November increased 9.8 percent to 502 from 457 in November 2024. Broken down by home type, closed sales in the condominium market increased 14.6 percent to 243 closed sales from 212 closed sales in November 2024; while closed sales in the single-family market increased 5.7 percent to 259 closed sales from 245 closed sales in November 2024. With seven straight months of pending sales and six straight months of closed sales above the same periods last year, the market is demonstrating strong momentum heading into our season. In addition, inventory returning to pre-pandemic levels, offering buyers ample choice, the foundation is in place for an even better 2026.
Overall inventory in November increased 1.6 percent to 5,757 properties from 5,666 properties in November 2024. Interestingly, inventory in the single-family home market decreased by 5.5 percent, from 2,804 in November 2024 to 2,649 in November 2025. Conversely, the inventory of condominiums in Naples increased 8.6 percent to 3,108 condominiums from 2,862 condominiums in November 2024. Many more sellers are getting serious about selling their homes without languishing on the market and facing increased competition in January and February. They are open to positioning their home appropriately in the market, which may entail a significant price adjustment, improvements in condition, or both.
The median closed price for single-family homes in November decreased 8.1 percent to $680,000 from $740,000 in November 2024. However, the median closed price of condominiums in November increased 1.2 percent to $420,000 from $415,000 in November 2024.
The NABOR® November 2025 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation, as well as an overall market summary. NABOR® sales statistics are presented in chart format ( CLICK HERE).
What does this all mean?
It seems that numerous price decreases have occurred, but only in slight amounts.  Sellers need to price homes realistically.  If they do, their home will sell.  Homes listed at $2M or more usually sell faster.   The reason is that many buyers in Collier County pay cash. Therefore, $2M level or more appears to be the sweet spot.  It’s hard to sell for $2M or less, especially $1M or less, because buyers seek mortgages.  There is some good news on the horizon: we did not have any hurricanes this year, so it appears insurance rates are coming down, and the mortgage interest rates are coming down, which will help everyone!
Looking to get out of the cold?
We have some very nice seasonal rentals available.  If you are tired of the snow & cold, Naples, Florida, may be just the place to come to get warm!  If you are interested, please call me at 239-293-3592 or email RobertNardi@aol.com. Lastly, you can always perform your own searches at BuyNaples.Net.

 

I am wishing everyone a Healthy & Happy New Year!